📊 LTH Key Takeaways
Is LTH a Good Investment? Thesis Analysis
Life Time demonstrates strong operational fundamentals with 14.3% revenue growth and exceptional 139.2% net income growth, driven by legitimate operating leverage (16.1% operating margin). However, negative free cash flow of -$21M despite $870.5M operating cash flow, combined with weak liquidity ratios (0.63x current, 0.52x quick), creates material financial stress that offsets the strong P&L performance. The capital-intensive business model requires close monitoring of cash generation sustainability.
Why Buy LTH? Key Strengths
- Strong revenue growth of 14.3% YoY in competitive fitness industry
- Exceptional net income growth of 139.2% YoY indicating legitimate operational improvements and margin expansion
- Solid operating margins at 16.1% with $481.3M operating income from $3.0B revenue
- Healthy operating cash flow generation of $870.5M
- Moderate leverage with Debt/Equity ratio of 0.48x, below concerning thresholds
LTH Investment Risks to Consider
- Negative free cash flow of -$21M despite strong operating cash flow - capex of $891.5M exceeds operating cash generation
- Dangerously weak liquidity position with current ratio of 0.63x (well below healthy 1.5-2.0x range) and quick ratio of 0.52x
- Modest cash position of $204.8M relative to $1.5B long-term debt and $4.9B total liabilities - limited financial flexibility
- Interest coverage ratio unavailable - cannot assess debt service sustainability
- High capex burden ($891.5M) suggests capital-intensive business model with unclear sustainability of returns on invested capital
Key Metrics to Watch
- Free cash flow trend and capex levels relative to operating cash flow
- Current and quick ratio improvement - liquidity sustainability
- Operating cash flow growth rate and conversion to free cash flow
- Interest coverage ratio and debt service capability
- Revenue growth maintenance and net margin sustainability quality
LTH Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LTH Profitability Ratios
LTH vs Default Sector
How Life Time Group Holdings, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LTH Overvalued or Undervalued?
Based on fundamental analysis, Life Time Group Holdings, Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LTH Balance Sheet & Liquidity
LTH 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Life Time Group Holdings, Inc.'s revenue has grown significantly by 58% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.37 reflects profitable operations.
LTH Growth Metrics (YoY)
LTH Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $693.2M | $41.4M | $0.19 |
| Q2 2025 | $667.8M | $52.8M | $0.26 |
| Q1 2025 | $596.7M | $24.9M | $0.12 |
| Q3 2024 | $585.2M | $7.9M | $0.04 |
| Q2 2024 | $561.7M | $17.0M | $0.08 |
| Q1 2024 | $510.9M | $24.9M | $0.12 |
| Q3 2023 | $496.4M | $7.9M | $0.04 |
| Q2 2023 | $461.3M | -$2.3M | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LTH Capital Allocation
LTH SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Life Time Group Holdings, Inc. (CIK: 0001869198)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LTH
What is the AI rating for LTH?
Life Time Group Holdings, Inc. (LTH) has an AI rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LTH's key strengths?
Claude: Strong revenue growth of 14.3% YoY in competitive fitness industry. Exceptional net income growth of 139.2% YoY indicating legitimate operational improvements and margin expansion.
What are the risks of investing in LTH?
Claude: Negative free cash flow of -$21M despite strong operating cash flow - capex of $891.5M exceeds operating cash generation. Dangerously weak liquidity position with current ratio of 0.63x (well below healthy 1.5-2.0x range) and quick ratio of 0.52x.
What is LTH's revenue and growth?
Life Time Group Holdings, Inc. reported revenue of $3.0B.
Does LTH pay dividends?
Life Time Group Holdings, Inc. does not currently pay dividends.
Where can I find LTH SEC filings?
Official SEC filings for Life Time Group Holdings, Inc. (CIK: 0001869198) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LTH's EPS?
Life Time Group Holdings, Inc. has a diluted EPS of $1.66.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LTH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Life Time Group Holdings, Inc. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LTH stock overvalued or undervalued?
Valuation metrics for LTH: ROE of 12.0% (sector avg: 15%), net margin of 12.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LTH stock in 2026?
Our dual AI analysis gives Life Time Group Holdings, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is LTH's free cash flow?
Life Time Group Holdings, Inc.'s operating cash flow is $870.5M, with capital expenditures of $891.5M. FCF margin is -0.7%.
How does LTH compare to other Default stocks?
Vs Default sector averages: Net margin 12.5% (avg: 12%), ROE 12.0% (avg: 15%), current ratio 0.63 (avg: 1.8).